Strategic Analysis of the Uk Fast Food Industry

2843 WordsApr 5, 201312 Pages

Business and Management Strategy
BAM6012
A Strategic and Competitive Analysis of the UK’s Fast Food Industry
Executive Summary
The food industry in the UK is a multi-billion pound industry that is mainly dominated by a few competitors such as McDonalds, Burger King, KFC and Subway. Most of the food sold in these fast food restaurants is unhealthy, which is becoming a huge concern as there are many people dying of obesity and other health related problems. This is one of the key social factors facing the fast food market at the moment.
The fast food industry is a ‘red ocean’ as it is already well defined where rivalry is intense. It is also a perfectly competitive industry as the barriers to entry are low and there are many rivals…show more content…

Fast Food Industry Profile: The United Kingdom’ 2012, Fast Food Industry Profile: United Kingdom, pg 1-35, Business Source Premier, EBSCO host, viewed [25/11/2012]
PESTLE analysis
“PESTLE analysis will help to capture understanding about aspects of the context by using the prompts political, economic, sociological, technological, legal and environmental. It is a technique that facilitates a wide scan of the context and actual or potential factors that would affect objectives if left unmanaged.” (Webster-Murray, R. 2010. pg.88)
Political factors * There is an increasing amount of pressure from the government to encourage people to eat healthier as the number of deaths relating to obesity and an unhealthy lifestyle is on the increase year after year. * The government can allocate grants to business start-ups to try and promote fair competition within the marketplace. * There is speculation over the government introducing a new ‘fat tax’ on fast food served over a counter. This will add on another 20% to the current price in taxes. http://www.guardian.co.uk/society/2012/may/16/fat-tax-unhealthy-food-effect
Economic factors * Consumers will have less disposable income with the current economic climate and therefore may be less likely to spend money on fast food as it may be seen as a luxury. * Exchange rates may affect profitability on the business if they are sourcing materials (all the ingredients used to

a. Competitive rivalry: Many international food service providers that provide their services to Caribbean, Africans and Asians and have their operations in the UK as well. Therefore, customers can quickly look for a substitute somewhere else, so we need to work hard both in our food presentations and customer services to win the loyalty of our clients (Porter’s Five Forces of Competitive Position Analysis, 2011-2015).
Top Ranked Global Competitor
McDonald:
McDonald is the top-ranked competitor

as an aid to effective strategic management
Present business scenario across the world is very complex and unpredictable. The globalisation, changes in demographics and technological advancements and political changes influence the business a great deal (Kanter 1991 as cited by Chun Wei Choo, 1995).
Hotel industry is one of the fast changing industries and needs to attune to the external changes for the greater viability. Therefore a hotel industry needs to have a strategic plan for a sustainable

Firstly, the marketing audit will be assessed using SWOT Analysis, P.E.S.T. analysis and five sources analysis to discuss operating performance and environment. Then, focus will be moved to discussion of marketing strategies using Ansoff matrix, and marketing mix will be considered as well for application. Finally, the marketing plan will turn emphasis on implementation, and monitoring and controlling.
2. Marketing Audit and Strategic Priority
Subway is an American sandwich chain, subsidiary of